KUALA LUMPUR: UEM Group Bhd has proposed to its 69.14 per cent-owned subsidiary, UEM Edgenta Bhd
, to undertake a selective capital reduction and repayment (SCR) exercise pursuant to Section 116 of the Companies Act 2016.
It said the offer price of RM1.10 per share is for the remaining 257 million shares or 30.86 per cent
stake, representing a 26.4 per cent premium to UEM Edgenta’s last traded price of 87 sen as of yesterday and a 38.5 per cent premium to its six-month volume-weighted average price of 79 sen.
The total cash repayment amounts to RM282 million, the group said in a statement here today.
"The acceptance and recommendation of the proposed SCR by the board of UEM Edgenta
to entitled shareholders will remain open until Jan 9, 2026. Upon the successful implementation of the exercise, UEM Group will be the sole shareholder of UEM Edgenta, effectively making it a wholly-owned subsidiary,” said the group.
UEM Group said the proposed SCR aims to foster growth and strengthen the long-term prospects of UEM Edgenta.
Despite progress in stabilising its core operations in the challenging post-pandemic environment, UEM Edgenta’s overall financial performance remains subdued compared to pre-pandemic levels due to rising operational costs among other factors.
Furthermore, the proposed SCR offers UEM Edgenta greater flexibility in deciding its strategic direction, pursuing strategic initiatives and managing its diversified businesses more effectively. "This will place the company in a better position to allocate resources efficiently while remaining agile in responding to market changes, thus paving the way for a more effective business model," it added.
Meanwhile, UEM Edgenta, in a filing to Bursa Malaysia today, said the board has received a letter from UEM Group Bhd on the proposed exercise.
The company said the board, save for Datuk Amran Hafiz Affifudin, Mohd Asrul Ab Rahim and Nurul Iman Mohd Zaman, who are deemed interested in the proposed SCR, will deliberate on the proposed exercise and decide on the next course of action. Accordingly, a further announcement will be made in due course after the board’s deliberation,” said UEM Edgenta. - Bernama
